Uber's Australian takeover seems unstoppable after New South Wales became the second Australian state or territory to legalise UberX Thursday.

New South Wales Transport Minister Andrew Constance told reporters Thursday the rideshare giant and similar services will be legalised in the state from midnight. Taxi drivers will also be compensated for the disruption to their industry.

In September, the Australian Capital Territory became the first city in the world to allow Uber to legally operate before it had even entered the market.

"Customers, taxi and hire car operators, drivers and new entrants have all made clear they want change and today we are making it happen," Constance said in an emailed statement. "These reforms are expected to blow the doors of innovation wide open for 'booked' services, where customers can track their driver, provide direct feedback, hold them more accountable and choose from accessible price points."

The change will include the repeal of more than 50 taxi and hire car regulations, and the minister proposed a new regulator and commissioner be created to take care of the industry.

When parliament resumes in 2016, Constance said he will introduce a legislative package that will give the commissioner power to impose severe penalties on companies that break the rules.

A A$250 million (US$179 million) "industry adjustment" package will also be created for those who own taxi or hire car plates. The value of taxi license plates has been declining for a number of years, which can be attributed to the issuing of more licenses as well as the entry of Uber to the market, Fairfax Media reported. In 2014, the average value of a taxi licence plate sat at A$375,000 (US$269,368) but in the last month it dropped to A$228,500 (US$164,135).

The ACT also compensated taxi drivers, with a package including a drop in license fees by 2017 to A$5,000 (US$3,582) each year.

David Rohrsheim, general manager of Uber Australia and New Zealand, said in an emailed statement he was pleased with the move toward a new system.

"This important step forward is an incredible reflection of the way Sydneysiders have embraced ridesharing over the past 18 months," Rohrsheim said. "We applaud the government’s leadership in listening to the people of New South Wales and embracing the future."

In an emailed statement, the NSW Taxi Council urged the government to work through the changes carefully to avoid "unintended consequences."

"There is no doubt that some members will do it very tough and will feel significantly challenged by the news," it said. "Despite this, we are a resilient and experienced industry which has innovated extensively for decades and we’ll work hard to support our members in transitioning to the new system."

Uber's legal status remains murky in other Australian states. In early December, a Victorian court found a Melbourne UberX driver guilty of driving a hire car without a commercial licence or registration.

Mashable
is a global, multi-platform media and entertainment company. Powered by its own proprietary technology, Mashable is the go-to source for tech, digital culture and entertainment content for its dedicated and influential audience around the globe.